Livestock innovations in Mongolia spark growth and resilience

Livestock farming is deeply rooted in Mongolia’s cultural heritage and is the backbone of the country’s rural economy, supporting nearly a third of the population. However, the sector faces significant challenges from environmental degradation and climate change, including an increasing frequency of devastatingly harsh winters, known as dzud. The World Bank’s Livestock Commercialization Project offers a comprehensive approach to addressing these challenges, focusing on emergency response, climate resilience, animal health, and market innovations.

Emergency response: A safety net for Mongolia’s herders

Mongolia’s mostly nomadic herders are no strangers to climate-induced disasters, with dzud posing a recurring threat to their livelihoods. To mitigate these risks, the Livestock Commercialization Project integrates disaster relief measures to respond quickly to emergencies. During the 2021-2022 dzud, its Contingent Emergency Response Component was activated to deliver essential aid including feed, veterinary services, and temporary shelters for livestock. Over 11,800 metric tons of high-energy concentrated animal feed was distributed to 46,470 herder households across 74 districts in 6 provinces. One-time cash assistance was provided to almost 180,000 herder households to help them withstand the overlapping crises of COVID-19, dzud, and high intensity dust storms. Zero livestock lives were lost during the last dzud and meat production increased by over 36 percent.

To ensure a steady supply of nutritious feed during harsh winters, the project supported local companies establishing feed hubs across vulnerable regions. These hubs produce fodder and feed crops, process, store and distribute high-quality concentrate feed, allowing herders to sustain their livestock through severe weather. The feed hubs also contribute to environmental sustainability by reducing methane emissions from enteric fermentation in ruminants by promoting wheat bran, which is a byproduct of milling, as feed in winter and switching to extruded feed concentrates and enhancing soil carbon stocks by reducing grazing pressure on pastures. A feed hub established by Buyant Tuv LLC under the project helped herders increase productivity by over 36 percent while helping reduce emissions by about 290,000 tons of CO₂ equivalent through improved productivity.

Animal health and market innovations

Improved animal health is a cornerstone of livestock productivity. The project prioritizes animal health systems by improving surveillance and combating transboundary animal diseases. The project has upgraded provincial veterinary laboratories to international standards and trained nearly 3,000 veterinary professionals. During the summer of 2021, Mongolia witnessed widespread outbreaks of multiple animal diseases including Foot and Mouth, Pestes-Petit-Ruminants, and Lumpy Skin Disease. The project helped the government deliver 6.5 million doses of strategic vaccines, resulting in zero active cases by April 2022.

Innovation and collaboration are at the heart of the Solutions Marketplace, a platform introduced through the project to connect herders, researchers, entrepreneurs, and investors. The Marketplace allows 35 small Mongolian firms to develop productive partnerships in animal health, breeding, feeding, and the adoption of climate-smart husbandry practices. These partnerships have reached over 10,200 beneficiaries and increased livestock productivity by up to 30 percent.

Technological advancements

Since its launch, the project has helped introduce innovative technologies in Mongolia’s livestock sector. During the COVID-19 pandemic, the project turned to digital technology to continue training and outreach of nomadic herders. Hydroponic technology was introduced to produce enhanced nutrient feed for winter feeding of livestock, and artificial insemination to enhance herd quality. Blockchain technology is also being supported to strengthen traceability along the livestock value chain and streamline logistics. The Facebook platform was leveraged for real time disease surveillance.

Khanbogd Cashmere LLC, a Mongolian cashmere manufacturer and exporter renowned for its high-quality, sustainable products and commitment to ethical practices and cultural preservation is strengthening herder cooperatives and leveraging blockchain technology to enhance traceability along the livestock value chain and streamline logistics. The project has mobilized over 1,450 herders in 17 cooperatives, with 300 herders receiving Sustainable Fiber Alliance certification. Certification has led to a 30-ton increase in sustainable cashmere production capacity, with price premiums reaching up to 19 percent above prevailing market rates. Additionally, the project has developed the EZEN cashmere brand, using certified cashmere exclusively sourced from sub-project-supported herders, ensuring sustainability and premium market positioning.

Digital Credit LLC, a Mongolian technology development company, received project support to develop an e-commerce platform that connects nomadic herders with markets and improves food safety through product tracing. Partner herders collaborate with the company to optimize animal nutrition using conserved fodder and formulated feed, which supports healthy weight gain.  This approach results in a 150 percent increase in herder income and an estimated 9 percent reduction in greenhouse gas emissions.

The World Bank’s Livestock Commercialization Project in Mongolia provides a holistic approach to enhancing resilience and sustainability in the livestock sector. By improving productivity through better animal health and a commercialized value chain, herders can boost their competitiveness, drive economic growth, create rural jobs, and enhance food security and safety. By integrating emergency response, animal health, market innovations, and advanced technologies, the project supports Mongolia’s herders in building a secure and sustainable future. The project’s comprehensive strategy offers a blueprint for resilience, combining proactive measures, indigenous knowledge, and innovative financial tools.